Is the above project able to meet this benchmark for​ funding? What is the payback period?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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The American Pharmaceutical Company​ (APC) has a policy that all capital investments must have a five​-year or less discounted payback period in order to be considered for funding. The MARR at APC is 9​% per year. Is the above project able to meet this benchmark for​ funding? What is the payback period?
To Find P
Discrete Compounding; /=9%
Single Payment
Compound
Amount
Factor
To Find F
Present
Worth Factor
Compound
Uniform Series
Present
Worth Factor
Sinking
Amount
Factor
Fund
Factor
Capital
Recovery
To Find F
To Find P
To Find A
Given P
Given F
Given A
Given A
Given F
Factor
To Find A
Given P
N
FIP
PIF
FIA
PIA
AIF
AIP
1
1.0900
0.9174
1.0000
0.9174
1.0000
1.0900
23
1.1881
0.8417
2.0900
1.7591
0.4785
0.5685
3
1.2950
0.7722
3.2781
2.5313
0.3051
0.3951
4
1.4116
0.7084
4.5731
3.2397
0.2187
0.3087
5
1.5386
0.6499
5.9847
3.8897
0.1671
0.2571
6
1.6771
0.5963
7.5233
4.4859
0.1329
0.2229
7
1.8280
0.5470
9.2004
5.0330
0.1087
0.1987
8
1.9926
0.5019
11.0285
5.5348
0.0907
0.1807
9
2.1719
0.4604
13.0210
5.9952
0.0768
0.1668
10
2.3674
0.4224
15.1929
6.4177
0.0658
0.1558
11
2.5804
0.3875
17.5603
6.8052
0.0569
0.1469
12
2.8127
0.3555
20.1407
7.1607
0.0497
0.1397
13
3.0658
0.3262
22.9534
7.4869
0.0436
0.1336
14
3.3417
0.2992
26.0192
7.7862
0.0384
0.1284
15
3.6425
0.2745
29.3609
8.0607
0.0341
0.1241
Transcribed Image Text:To Find P Discrete Compounding; /=9% Single Payment Compound Amount Factor To Find F Present Worth Factor Compound Uniform Series Present Worth Factor Sinking Amount Factor Fund Factor Capital Recovery To Find F To Find P To Find A Given P Given F Given A Given A Given F Factor To Find A Given P N FIP PIF FIA PIA AIF AIP 1 1.0900 0.9174 1.0000 0.9174 1.0000 1.0900 23 1.1881 0.8417 2.0900 1.7591 0.4785 0.5685 3 1.2950 0.7722 3.2781 2.5313 0.3051 0.3951 4 1.4116 0.7084 4.5731 3.2397 0.2187 0.3087 5 1.5386 0.6499 5.9847 3.8897 0.1671 0.2571 6 1.6771 0.5963 7.5233 4.4859 0.1329 0.2229 7 1.8280 0.5470 9.2004 5.0330 0.1087 0.1987 8 1.9926 0.5019 11.0285 5.5348 0.0907 0.1807 9 2.1719 0.4604 13.0210 5.9952 0.0768 0.1668 10 2.3674 0.4224 15.1929 6.4177 0.0658 0.1558 11 2.5804 0.3875 17.5603 6.8052 0.0569 0.1469 12 2.8127 0.3555 20.1407 7.1607 0.0497 0.1397 13 3.0658 0.3262 22.9534 7.4869 0.0436 0.1336 14 3.3417 0.2992 26.0192 7.7862 0.0384 0.1284 15 3.6425 0.2745 29.3609 8.0607 0.0341 0.1241
End of Year
0
1
234
5
6-10
Cash Flow
- $270,000
- $35,000
$60,000
$190,000
$230,000
$360,000
$95,000
Transcribed Image Text:End of Year 0 1 234 5 6-10 Cash Flow - $270,000 - $35,000 $60,000 $190,000 $230,000 $360,000 $95,000
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